Accounting. Online Accounting Help. Online Accounting. Online Accounting System. History of Accounting. General Accounting

Objectivity Principle.
Financial statement information must be supported by independent, unbiased, and verifiable evidence. The cost principle is also consistent with objectivity because most users consider cost to be objective.
Example: If Carol Finlay purchases new furniture and records the transaction based on an invoice prepared by the store of purchase, the invoice is inde¬pendent and unbiased evidence that verifies the details of the transaction.
Cost Principle.
All transactions are recorded based on the actual cash amount received or paid. In the absence of cash, the cash equivalent amount of the exchange is recorded.4 Example: If Finlay Interiors purchased used furniture for $5,000 cash, it is recorded in the accounting records at $5,000. It makes no difference if Carol Finlay thinks that the value of the equipment is $7,000.
Going-concern Principle or Continuing-concern Principle
Financial statement users assume that the statements reflect a business that is going to continue its operations instead of being closed or sold. Therefore, assets are maintained in the accounting records at cost and not reduced to a liquidation value as if the business were being bought or sold. If a company is to be bought or sold, buyers and sellers are advised to obtain additional information, such as estimated market values, from other sources